NYSE$MBI

MBIA Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a consolidated GAAP net loss primarily due to an unfavorable variance of net gains/losses on financial instruments in variable interest entities (VIEs) consolidated at MBIA Insurance Corporation (MBIA Corp.), partially offset by favorable variances of investment and other realized net gains/losses for National Public Finance Guarantee Corporation (National).

MBIA Inc. reported a consolidated GAAP net loss of $74 million, or $(1.46) per share, for the second quarter of 2023 compared to a consolidated GAAP net loss of $36 million, or $(0.72) per share, for the second quarter of 2022. The adjusted net loss was $22 million or $(0.45) per diluted share for the second quarter of 2023 compared with an Adjusted Net Loss of $47 million or $(0.93) per diluted share for the second quarter of 2022.

  • MBIA's financial results remain relatively stable.
  • Both of MBIA’s insurance companies had modest adjustments to their losses and loss adjustment expenses.
  • The company is focused on the resolution of PREPA.
  • MBIA is endeavoring to enhance shareholder value through expense reductions, share repurchases, and active monitoring of insurance portfolios.

Headline financials

Total Revenue

$28M

Previous: $11M+154.5%
EPS (adj)

-$0.45

Previous: -$0.93+51.6%
Net Income

-$74M

Previous: -$36M-105.6%
Gross Profit

$28M

Previous: $24M+16.7%
Cash & Equivalents

$208M

Previous: $202M+3.0%
Total Assets

$3.26B

Previous: $4.07B-19.9%

Revenue & EPS history

MBIA · Revenue · Quarterly

$28M

Q2 2023+154.5%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

This release includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected.

Tailwinds

  • MBIA Inc. and National caution readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates.
  • National and MBIA Inc. undertake no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such result is not likely to be achieved.

Headwinds

  • MBIA Inc. or National will experience increased credit losses or impairments on public finance obligations issued by state, local and territorial governments and finance authorities that are experiencing unprecedented fiscal stress.
  • The possibility that loss reserve estimates are not adequate to cover potential claims.
  • MBIA Inc.’s or National’s ability to fully implement their strategic plan.
  • Changes in general economic and competitive conditions.
  • The impact on our insured portfolios or business operations caused by the global spread of the novel coronavirus COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.3%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+0.9%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+32.5%

Q3 2017

Best reaction

-20.6%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+3.3%-3.2%-8.6%
Q3 2025+9.0%+11.4%+8.6%
Q1 2025-1.3%-8.8%-6.7%
Q4 2024-13.5%-21.7%-28.6%
Q3 2024+4.2%+11.8%+56.4%
Q1 2024-9.3%-10.6%-20.4%
Q4 2023-4.4%-5.3%-1.0%
Q3 2023-6.5%-5.7%+4.2%
Q2 2023-1.7%+1.4%-6.0%
Q1 2023-17.5%-17.5%-9.7%
Q4 2022-10.0%-8.4%-34.1%
Q3 2022+6.3%+7.8%+15.1%
Q2 2022-16.1%-5.8%-7.6%
Q1 2022-9.6%-7.1%+10.3%
Q4 2021-20.6%-9.3%-0.1%
Q3 2021-0.7%+1.0%-26.1%
Q2 2021-8.4%-8.1%-15.8%
Q1 2021-12.9%-9.5%+2.6%
Q4 2020-1.6%+5.2%+31.8%
Q3 2020+10.4%+4.6%+27.0%
Q2 2020-0.6%+5.5%+2.3%
Q1 2020-13.3%-17.4%-3.6%
Q4 2019-2.7%-2.3%-10.2%
Q3 2019+10.5%+7.4%-2.4%
Q2 2019-4.6%+0.0%+1.9%
Q1 2019+5.5%-4.7%-5.6%
Q4 2018+6.6%+7.0%-4.3%
Q3 2018-3.2%-9.4%-15.2%
Q2 2018+8.3%+3.3%-0.2%
Q1 2018+2.3%+3.5%+12.4%
Q4 2017+1.1%+7.4%+15.9%
Q3 2017+32.5%+32.6%+20.6%
Q2 2017+3.0%+3.7%+0.0%
Q1 2017+10.8%+3.3%+10.0%
Q4 2016-3.5%-7.2%-17.9%
Q3 2016+7.9%+17.6%+45.1%
Q2 2016-1.1%-4.7%-6.4%
Q1 2016+0.7%
Q4 2015+9.5%
Q3 2015+2.5%
Q2 2015-0.5%
Q1 2015+4.0%
Q4 2014+3.1%
Q3 2014+1.9%
Q2 2014+1.8%
Q1 2014+2.1%
Q4 2013+9.5%
Q3 2013+5.4%
Q2 2013-5.6%
Q1 2013-0.4%
Q4 2012-2.3%
Q3 2012-12.4%
Q4 2011+11.2%
Q2 2012+11.2%
Q1 2012+3.0%
Q3 2011-5.4%
Q2 2011-0.3%
Q1 2010-3.8%
Q1 2011-1.8%
Q4 2008-6.2%
Q4 2009-6.2%
Q4 2010-6.2%
Q3 2010-4.9%
Q3 2009-4.9%
Q2 2010+8.2%
Q2 2009+8.2%

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